Delhi Jal Board Contractors Welfare Association Vs State of NCT of Delhi & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition filed by a contractors’ association representing 171 members engaged in executing works for the Delhi Jal Board (DJB). The petition challenged the demand of 18% GST on contracts executed between the association’s members and DJB. The association contended that DJB qualifies as a “local authority” under Section 2(69) of the CGST Act, and therefore, GST should be levied at 12% instead of 18%.
The petition also challenged an alert circular dated 7 August 2025 issued by the Directorate General of GST Intelligence, arguing that it was issued beyond the authority’s powers.
The Court noted that a similar issue regarding the classification of DJB as a local authority and the applicable GST rate was already under consideration in another pending matter. In that case, the Court had granted an interim stay on proceedings arising from show cause notices, observing that the issue involves a legal determination to avoid prolonged litigation.
Extending the benefit of the earlier interim order, the Court directed that the same protection would apply to all members of the petitioner association. This relief was made subject to conditions, including payment of deficient court fees for all members and filing of affidavits confirming that each member would be bound by the final outcome of the case.
